Most people think of data rooms as an instrument for completing due diligence in mergers and acquisitions (M&A), but they can also be helpful in capital raising. Startups may use a dataroom for sharing documentation with investors. This is especially true when they are close to the end of a fundraising campaign. A data room with the right features can streamline communication and improve trust among investors.

A dashboard is usually found in a data room and provides an overview of recent notifications and activity. Users should be able choose their preferred view of the dashboard, as find this well as adjust their security and notification settings. Upon logging into the system, users will have to enter their email address, confirm the Terms of Privacy and Use and change their password security settings.

After users have signed in, they’ll be able access and download documents. A data room should contain an index that allows users to locate the document they’re looking for, and, most important, it should be easy to edit the file if needed. In addition, a data space should be able of tracking the amount of engagement with each document.

A data room must include an area where questions can be asked and answered. The platform can categorize answers, questions and even pinpoint certain phrases and words that need to be deleted using its own artificial intelligence engine. The system can then mark these sections with a red arrow and mark them accordingly as a future reference.